Indian retailer Trent's revenues jump 52% in Q2 FY24

07 Nov '23

2 min read

Pic: Trent

Insights

In Q2 FY24, Trent recorded a 52 per cent revenue jump to ₹3,164 crore and a 129 per cent spike in PBT to ₹314 crore, compared to last year.
The company added 38 new stores in Q2 FY24.
Its fashion concepts, particularly Westside and Zudio, continued to exhibit strong gross margin profiles.
Trent's expansion strategy saw its retail presence grow to 661 stores.

Trent Ltd, the retail arm of the India’s Tata group, has reported a substantial 52 per cent surge in its consolidated revenues for the second quarter of fiscal 2024 (Q2 FY24), reaching ₹3,164 crore, up from ₹2,081 crore in the same period last year. The company's profit before tax (PBT) witnessed an even more impressive year-on-year growth of 129 per cent, standing at ₹314 crore for Q2 FY24 compared to ₹137 crore in Q2 FY23.

This performance signifies a compounded annual growth rate (CAGR) of 36 per cent over the Q2 FY20 figures for revenues and an exceptional 69 per cent CAGR for PBT, showcasing the company's robust growth trajectory over the past four years, the company said in a media release.

Trent's leading brands, Westside and Zudio, maintained their steady gross margin profile consistent with previous trends. The overall operating EBIT margin improved to 10.8 per cent for Q2 FY24, up from 9.7 per cent for the same quarter in the previous year.

During the quarter, Trent continued to expand its retail footprint, adding 38 new stores, which brings its total portfolio to 661 fashion stores. Specifically, 6 new Westside and 27 new Zudio stores were inaugurated across 19 cities, including the consolidation of 4 stores each from Westside and Zudio.

As of September 20, 2023, the company's diverse portfolio included 223 Westside stores, 411 Zudio stores, and 27 other lifestyle concept stores. Trent's fashion concepts saw an encouraging like-for-like (LFL) growth of over 10 per cent compared to Q2 FY23.

"Our lifestyle offerings across concepts, categories and channels witnessed strong momentum in Q2 FY24 despite challenging market conditions. We continue to see growing relevance for our offerings, resilience in our business model choices and attractiveness of our differentiated platform,” said Noel N Tata, chairman, Trent Limited.

Fibre2Fashion News Desk (DP)

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